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What is CIF and FOB terms?

What is CIF and FOB terms?

If you’re familiar with shipping or exporting and importing products then you must be familiar with terms like FOB and CIF which in simple language means Free on Board and Cost, Insurance, Freight.

What are the meanings of FOB and CIF in Inco terms 2010?

FOB — Free on Board. CFR — Cost and Freight. CIF — Cost, Insurance and Freight. CIP — Carriage and Insurance Paid Тo.

What are CIF shipping terms?

Cost, insurance, and freight (CIF) is an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer’s order while the cargo is in transit. The goods are exported to the buyer’s port named in the sales contract.

What are FOB shipping terms?

Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. “FOB shipping point” or “FOB origin” means the buyer is at risk once the seller ships the product.

What is FOB Incoterms?

When goods are bought or sold “Free on Board” (FOB) it means that the seller delivers the goods to a ship at a port previously agreed to by the seller and the buyer. The seller loads the goods onto the ship. The buyer then takes care of the import formalities and transportation to the final destination.

What does CIF mean in shipping terms?

Cost, insurance, and freight
Cost, insurance, and freight (CIF) is an international shipping agreement used when freight is shipped via sea or waterway. Under CIF, the seller is responsible for covering the costs, insurance, and freight of the buyer’s shipment while in transit.

What does FOB mean in shipping terms?

Free on Board
Free on Board (FOB) is a shipment term used to indicate whether the seller or the buyer is liable for goods that are damaged or destroyed during shipping. “FOB shipping point” or “FOB origin” means the buyer is at risk once the seller ships the product.

What does CIF shipping terms mean?

Cost, insurance, and freight (CIF) is an international shipping agreement, which represents the charges paid by a seller to cover the costs, insurance, and freight of a buyer’s order while the cargo is in transit. Cost, insurance, and freight only applies to goods transported via a waterway, sea, or ocean.

What is FOB shipment term?

Free on Board (FOB) is a term used to indicate who is liable for goods damaged or destroyed during shipping. “FOB origin” means the buyer is at risk once the seller ships the product. “FOB destination” means the seller retains the risk of loss until the goods reach the buyer.

What are the FOB terms of the ICC?

FOB INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS INCOTERMS 2010: ICC OFFICIAL RULES FOR THE INTERPRETATION OF TRADE TERMS FOB – Free On Board (named port of loading) Under FOB terms the seller bears all costs and risks up to the point the goods are loaded on board the vessel.

What does CIP mean in Incoterms 2010?

CIP – Incoterms 2010 CIP – Carriage and Insurance paid to … (Place of Destination) CIP Characteristics. Under CIP terms, the seller clears the goods for export and is responsible for deliver the goods at the agreed place of shipment. The seller must pay the cost of carriage, but seller’s risk ends at place of shipment.

What is the difference between CFR and CIF Incoterm?

It’s very similar to its sister Incoterm, CFR. Under the CIF Incoterm, the seller pays for all the costs to get the goods to the destination terminal. However, unlike CFR, the buyer is also responsible for purchasing insurance that covers loss or damage up to this point.

What is the difference between FOB and FAS Incoterm?

The FOB Incoterm is very similar to the FAS Incoterm, but it takes it one step further. This Incoterm dictates that the seller pays to get the goods to the origin port and gets them loaded onto a ship of the buyer’s choosing.